Product Suite

Supply Chain Glossary - E

Supply Chain Glossary - E

external environment

All the factors that exist outside the boundary of the organization that have the possibility of affecting any part of the organization. See: internal environment, organizational environment.

A situation where suppliers are viewed as an extension of the firm's manufacturing capabilities and capacities. The same practices and concerns that are commonly applied to the management of the firm's manufacturing system should also be applied to the management of the external factory.


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